Question
Saved Help Save & Exit Submit Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks,
Saved Help Save & Exit Submit Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Units Percentage Sinks 1,000 50% Mirrors 500 25% Vanities 500 25% erences Total 2,000 100% Percentage of total sales Sinks 48% Product Mirrors 20% Vanities 32% Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses $396,000 100.00% 76,000 19.19% $320,000 $165,000 80.81% 64,000 $101,000 100.00% $264,000 100.00% 38.79% 96,000 36.36% 61.21% $168,000 Total 100% $825,000 205, 200 63.64% 619,800 100.00% 24.87% 75.13% $ 320.00 $ 202.00 $ 336.00 576,900 Operating income $ 42,900 Break-even point in sales dollars Fixed expenses Overall C ratio $576,900 $767,896.90 0.75 Check my work
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